Petronas is terminating its Regasification Terminal Lahat Datu (RTLD) project due to uncertainty and delays, Malaysia’s state-owned energy company said in a filing…
READ MOREMalaysia's Energy Industry
in figures
Oil reserves2.7 billion barrels
Oil production573,000 bopd
Gas reserves900 mcm
Gas production74.2 bcm
Malaysia: LNG exporter
Malaysia’s oil and gas industry is a major pillar of the nation’s economy. The country of more than 23 million citizens is the second-largest hydrocarbons producer in Southeast Asia and the fifth largest exporter of LNG in the world. Malaysia began producing oil in the early 1900s from onshore assets in Sarawak and began moving into shallow-water plays in Peninsular Malaysia, Sarawak and Sabah in the 1960s. New technologies have unlocked new opportunities for more industrious offshore plays in the country’s main producing basins. The government has long pursued development of its maturing and marginal fields and further exploration activities to address a decline in production.
Malaysia’s oil and gas industry is tightly led by its NOC Petronas, which was established in 1974 and holds exclusive ownership rights to all E&P activities. The company’s contributions comprise around 35% of the state’s revenue. State-run upstream watchdog Petroleum Management Unit is responsible for handing out and overseeing production sharing licences in the country. The country has successfully attracted international IOCs interested in taking part in upstream opportunities, including ExxonMobil, Shell, ConocoPhillips, Spain’s Repsol and Japan’s JX Nippon Oil and Gas.
The nation is one of the world’s largest gas producers and exporters. While Malaysia’s NOC is the lead player in gas production and assets, Shell has established itself the second largest producer along with ExxonMobil, Thailand’s PTT Exploration and Production Public Company and Indonesia’s Pertamina having large shares in gas production. The largest domestic destinations for produced gas are the country’s industrial sector, which takes up around 49%, and the power generation sector, which takes up around 50%.
Malaysia boasts an extensive natural gas pipeline network. The majority, known as the Peninsular Gas Utilization network, is located in Peninsular Malaysia. Export of LNG comes from Malaysia’s regasification terminals, which are connected to its major pipeline network and exported to Singapore. LNG is mainly exported to other countries in the Asia Pacific region, with Japan and China being the main importers of Malaysian gas.
The oil pipeline system in the country is limited, and transport of the product remains largely dependent on tankers and onshore vehicles. The country has initiated projects to expand its oil storage capacity based on a capacity shortage in Southeast Asia, particularly in Singapore; Malaysia aims to become a regional storage alternative. Continued investment in refining activity over the last few decades has led to Malaysia generally meeting its domestic requirements. The nation is now looking to expand its refining capacity to supply the region and capitalise on exports.
Sapura Energy has been awarded a five-year contract from Thailand’s PTTEP for subsea services in Malaysia.
READ MORETotalEnergies has fully acquired Malaysia's SapuraOMV Upstream.
READ MOREMcDermott has won a contract from a Malaysian PTTEP subsidiary to enable gas delivery to a subsea production system tied back to the Kikeh FPSO.
READ MOREMalaysia's Petronas is eyeing new investments in the Atlantic Basin in a bid to boost its global LNG market share to 10%.
READ MOREFouad Mohammed Ali, CEO and managing partner of Upstream Solutions, talks to The Energy Year about the company’s role in Kuwait’s oil and gas industry and its…
READ MORERystad Energy has predicted a rise in upstream M&As in Southeast Asia in the next two years based on more than USD 5 million in assets on offer, the energy research…
READ MORESapuraKencana has signed agreements to the tune of USD 382 million, the Malaysian oilfield services major said Thursday.
The majority of the work will be executed…
READ MORESapuraKencana Petroleum cancelled plans to buy hydrocarbons assets in Vietnam worth USD 400 million from Malaysian national oil company Petronas, the Malaysian oil…
READ MORESwedish firm Lundin Petroleum said today that it has inked a conditional agreement to sell its FPSO Bertam, currently operating offshore peninsular Malaysia, to M3nergy…
READ MOREPetronas announced plans to cut costs and operating expenditures over the next four years to the value of USD 11.4 billion in an internal staff memo from its chief…
READ MORESapuraKencana has acquired three contracts with for a combined value of USD 117 million for construction, engineering and drilling services, the Malaysian oilfield…
READ MOREMalasian shipping corporation MISC has denied that it is in merger discussions with marine transportation, engineering and maintenance services compatriot Bumi…
READ MORELundin Petroleum has spudded an exploration well on Block PM308A offshore Malaysia, the Swedish upstream independent announced Monday in a statement.
Lundin has…
READ MORESapuraKencana Energy (SKE) has been given the go ahead by state-run Petronas for its B15 gas development project on block SK 310 offshore Malaysia, the company…
READ MOREGas has begun to flow at the Petronas-operated Kepodang field offshore Central Java in Malaysia, the state-owned integrated energy company announced on…
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